Deutsche Bank to axe 3,500 jobs as recession fears grip Germany

DEUTSCHE BANK is to cut 3,500 jobs as Germany teeters on the brink of recession.

The German lender said the redundancies, which are equivalent to 4pc of its worldwide staff, would mostly affect back office roles as automation replaces jobs that were until recently done by people.

Deutsche Bank hopes to save €1.6bn (£1.4bn) from the cuts and has a long-term aim to save €2.5bn overall.

More job cuts are likely. James von Moltke, the finance chief, said: “To tell you we were completely finished would be incorrect. We still have some work to do.”

The redundancies come as the German economy staves off a recession. It narrowly avoided entering a technical recession at the end of last year and growth is flatlining.

The economy has been ravaged by an energy crisis, which has hurt the manufacturing sector, and by high interest rates across the eurozone. That backdrop makes it more difficult for Deutsche Bank, Germany’s largest bank and its national champion lender.

Deutsche Bank did not say where in the world the axe would fall, but most of the job losses are likely to be in Germany. The bank employs 89,000 people globally with 7,000 based in London. It boosted its presence in the UK last year by buying broker Numis for £410m.

It is the latest bank to announce layoffs as dealmaking slows around the world and high interest rates curb borrowing. Citi announced plans to cut 20,000 jobs last year. In the UK, Barclays, Lloyds and Metro have all axed jobs owing to increased automation of banking services. Despite the tough environment, Deutsche Bank yesterday posted its highest profit for 16 years after making €5.7bn in 2023. Revenues at the group topped €28bn, helped by a strong showing in its private wealth division.

Christian Sewing, the chief executive, said EU policymakers should support European banks to create a rival to large US banks like JP Morgan.

He said: “We should have in Europe banks that can compete sizewise with US banks. If we make ourselves totally dependent on the large banks outside Europe we are making a mistake.” Deutsche Bank was linked to a possible takeover of German rival Commerzbank last year. There was also speculation about a bid for Dutch rival ABN Amro. Deutsche’s management dismissed the idea at the time, with Mr Sewing saying large takeovers were “not our priority”. He said smaller scale deals for local players were in favour, such as the deal for Numis.

Mr Sewing said the UK investment bank market was the “strongest in Europe with the biggest fee pool” and that this is where Deutsche Bank wanted to strengthen.

‘To tell you we were completely finished would be incorrect. We still have some work to do’